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SAITAMA, Japan (Reuters) - Japan's economic recovery will remain on track even if the gross domestic product contracts in April-June after an increase in the sales tax, Bank of Japan board member Koji Ishida said on Wednesday. A positive economic cycle, where gains in production feeds into stronger incomes and higher spending will remain intact and support growth, Ishida said in a speech to business leaders in Saitama, north of Tokyo. The BOJ should also be careful when deciding on its economic assessment as data in the first half of fiscal 2014 will be volatile due to the tax hike, he said. The BOJ maintained its expansionary monetary policy last week and extended special loan programs to help buoy economic growth, signaling its resolve to keep the positive mood generated by Prime Minister Shinzo Abe's reflationary policies from fading. (Reporting by Stanley White; Editing by Dominic Lau)